RPM International

With the vision of building a better world, RPM’s growth strategy aims to create sustained value for its key stakeholders and drive long-term success for the business.[8] The strategy includes the following:

• Strategic Acquisitions: RPM acquires entrepreneurial companies and product lines, and applies a disciplined approach to investing in their continued growth.
• Product Innovations: A major driving force behind its growth, RPM pioneers cutting‑edge product innovations that are designed to penetrate new markets, drive incremental sales growth and solve problems for its customer base.
• Connections Creating Value: RPM promotes a culture of collaboration among its operating companies—a strategy that results in increased market penetration, improved efficiencies in manufacturing and distribution, and shared technological resources.
• Geographic Expansion: RPM expands its global footprint through acquisitions, joint ventures and partnerships between its operating companies.
• Operational Excellence: RPM drives continuous improvement and operational excellence across its business segments.

RPM operates through four segments:[9]

• Construction Products Group products are sold to distributors, contractors and end-users over a large geographic footprint that spans approximately 130 countries and territories. About 34% of RPM's net sales are generated by the Construction Products Group. It includes the following major product lines:[2][1]
  • Waterproofing, coatings and institutional roofing systems
  • Sealants, air barriers, tapes and foams that seal joints in construction assemblies
  • Residential home weatherization systems
  • Specialized roofing and building maintenance services
  • Sealing and bonding solutions for windows, facades, interiors and exteriors
  • Flooring, waterproofing and glazing solutions
  • Solutions for passive fire protection
  • Rolled asphalt roofing materials, waterproofing products, chemical admixtures and industrial epoxy flooring systems
  • Concrete and masonry admixtures, concrete fibers, curing and sealing compounds, structural grouts, epoxy adhesives,
  • Floor hardeners and toppings, joint fillers
  • Insulated building cladding materials (Exterior Insulating and Finishing Systems, “EIFS”)
  • Insulated concrete forms
• Performance Coatings Group products are sold worldwide to contractors and distributors, as well as directly to end‑users with a unique supply-and-apply model serving manufacturers, public institutions and other commercial customers. The Performance Coatings Group generates approximately 20% of RPM's total sales. It includes the following major product lines:[2][1]
  • High-performance polymer flooring systems
  • Commercial, decorative flooring
  • Fiberglass reinforced plastic gratings and shapes
  • High-performance, heavy-duty corrosion-control coatings, containment linings, fireproofing and soundproofing products
  • Bridge expansion joints and deck membranes, curb and channel drains, highway markings, protective coatings and concrete repair
  • Amine curing agents, reactive diluents, specialty epoxy resins and other intermediates
• The Consumer Group manufactures and markets professional use and do-it-yourself products for a variety of consumer applications, including home improvement and personal leisure activities. The consumer segment's major manufacturing and distribution operations are located primarily in North America, along with a few locations in Europe, Australia, South Africa and South America. Its products are sold directly to mass merchandisers, home improvement centers, hardware stores, paint stores, craft shops, cosmetic companies and distributors. Approximately 34% of RPM's net sales are generated by the Consumer Group. It is composed of the following major product lines:[2][1]
  • Coating products to protect and decorate a wide variety of surfaces for the DIY and professional markets
  • Products for surface preparation, mold and mildew prevention, wallpaper removal and application, and waterproofing
  • Deck and fence restoration products
  • Metallic and faux finish coatings
  • Exterior wood deck and concrete restoration systems
  • Hobby paints and cements
  • Caulks, sealants, adhesives, insulating foam, spackling, glazing and other patch and repair products
• Specialty Products Group products are sold throughout North America and a few international locations, primarily in Europe. Specialty product lines are sold directly to contractors, distributors and end-users. The Specialty Products Group generates approximately 12% of RPM's total sales. It includes the following major product lines:[2][1]
  • Fluorescent colorants and pigments
  • Shellac-based-specialty coatings for industrial and pharmaceutical uses, edible glazes, food coatings and ingredients
  • Fire and water damage restoration products
  • Professional carpet cleaning and disinfecting products
  • Fuel additives
  • Nail enamels, polishes and coating components for the personal care industry
  • Wood treatments, furniture finishes and touch-up products
  • Pleasure marine coatings
  • Powder coatings

In May 1947, Frank C. Sullivan founded Republic Powdered Metals, the forerunner to RPM International Inc. The company manufactured and sold a heavy-duty aluminum roof coating called Alumanation, which is still sold today. Sales in the first year reached $90,000. From the beginning Sullivan determined that the success of the business would rest with its people. “Hire the best people you can find,” he said. “Create an atmosphere that will keep them. Then, let them do their jobs.” RPM operates under this same philosophy today. Every year under his leadership, the company attained sales and earnings increases.[10]

In August 1971, Frank Sullivan died suddenly. Later that same year, RPM, Inc. was formed to become a holding company to develop a more aggressive acquisition program in a rapidly consolidating paint and coatings industry. Frank's son, Thomas C. Sullivan, who was previously president of Republic Powdered Metals, became chairman and chief executive officer of the holding company. He and James A. Karman, who was elected president and chief operating officer in 1978, led RPM for more than three decades.[10]

After more than 30 years at the company's helm, Sullivan and Karman retired as executive officers of the company in 2002. During their tenure, net sales increased to $2 billion from $11 million, net income increased to $101.6 million from $0.6 million, cash dividends per share increased to $0.50 from $0.0035 (split-adjusted), and a $1,000 investment in RPM shares in 1971 would have been worth more than $100,000.[11] Tom Sullivan died in 2020 at the age of 83.[12]

Tom was succeeded by his son, Frank C. Sullivan, who became president and chief executive officer in 2002. He has continued to lead the company in a manner consistent with the legacy created by his father and grandfather before him. RPM's strategy for growth remains to: establish and maintain brand leadership in the markets it serves, strike a balance between industrial and consumer markets, generate growth both organically and through acquisitions, and to maintain an entrepreneurial operating culture.

In August 2013, RPM paid $61 million to settle U.S. General Services Administration claims regarding a subsidiary's overcharging the U.S. government on roofing contracts.[13]

In June 2014, the SEC launched an investigation into the timing of RPM's disclosure and accrual of loss reserves involving the GSA settlement. The company subsequently restated its results for the first, second and third quarters of fiscal 2013. The restatements had no impact on its audited results for the fiscal year ended May 31, 2013.[14]

On September 9, 2016, the SEC charged RPM and its general counsel, Edward W. Moore, with violating antifraud provisions of Federal securities laws by failing to disclose a material loss. According to the SEC's complaint Moore did not inform RPM's CEO, CFO, audit committee and independent auditors of material facts about the U.S. Department of Justice investigation into the GSA issue.[15] The company stated that it believed the allegations to be without merit and that it intended to defend itself in court.[16] On December 23, 2020, the SEC announced that the company and Moore agreed to pay more than $2 million to settle the SEC's charges without admitting or denying the allegations of the complaint.[17]

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